Lyra has transitioned from a DeFi AMM deployed on Ethereum L2s to a standalone appchain that provides core infrastructure for options trading and structured products, yet none of this has been reflected on the token price, which is almost at the same level as one year ago.

This is reminiscent of the Aevo trade we presented earlier this year. Not only do we expect to see a similar rerating in token price, but we also highlight the size of the opportunity from a relative value perspective. $AEVO is currently trading at almost $3B FDV versus $LYRA’s $115M FDV at a 0.8 mcap/FDV ratio, which means that there will be very little dilution ahead.

Our analysis suggests that the current market conditions and upcoming developments offer a favorable risk-reward ratio for $LYRA. This is our bet on them becoming the leading on-chain options trading platform, potentially even represening the opening chess move for a “vampire attack” to Deribit.